I will be in a credit repair program for 3 years and then I can refinance at a lower rate. Is this standard? Or can I get a better deal. I live in Texas.
Thanks!
2007-01-26 04:00:50 · 9 answers · asked by Twinkle 1 in Business & Finance ➔ Credit
Refinancing a mortgage loan in 3 years isn't going to help you lower your monthly mortgage payments if you can't recouperate the loss, in terms of closing costs. Each time you refi, you'll have to pay closing costs again, which can be up to $10,000 or more depending on the loan.
You can check mortgage rates for a variety of loan products in your state, e.g., 30-yr fixed, 5/1 ARM, etc, on http://www.Bankrate.com.
If you haven't bought a home yet, you could go ahead through a credit repair program, pay off all your bills on time, and maybe take out a small personal loan at your bank and pay that back in full over a period of time. It's not an overnight fix that you can repair your credit history.
If you're married, does your spouse have a better credit score?
2007-01-26 04:14:16 · answer #1 · answered by mktgurl 4 · 0⤊ 0⤋
why dont you try to fix your credit first.... pay what you have to pay, dispute every account that is erroneous or not yours....
If you increase your credit score by 100 points, I am sure you can get something better....
11% is too high for a mortgage... and yes in 3 years you can refinance but in 3 years a lot of things can happen....
Whoever is telling you that in 3 years you can refinance, ask them if the can give you in writing the guarantee that you will be able to refinance and get a better deal after 3 years.... They can't!
2007-01-26 04:19:33 · answer #2 · answered by notsure 2 · 0⤊ 0⤋
I wouldn't get into a credit repair program. They keep you locked in, and part of the contract usually states that you can't apply for any new credit during that time. So essentially if your score improves, you're still stuck in the program paying high interest rates, though you may qualify for lower interest rates.
That, and they charge you money to be involved in their programs. I say stay away from credit repair and consolidation programs. Bad news all around. Get credit help by teaching yourself about credit!
Learn more at http://www.thetruthaboutcreditcards.com
2007-01-26 04:22:56 · answer #3 · answered by Todd S 3 · 0⤊ 0⤋
Im actually surprised you got a rate as low as 11% with a credit score that low. In a few years you should be able to refinance. Yes, this is pretty standard.
2007-01-26 04:05:20 · answer #4 · answered by tchem75 5 · 1⤊ 0⤋
You for sure did not get a "pay for delete" once you paid off your collections. those will stay to inform the tale your document for 7 years. you may want to attempt to dispute the concepts and if the collector doesn't make sure the debt, they are going to delete it. you are able to pick to attend somewhat longer to attempt this. this is not likely you receives a house loan with that score. in case you do manage to get a private loan your expenses will be very extreme. it really is a sturdy time to purchase a house yet no longer for you. the more effective interest you may want to pay(in case you probably did manage to discover someone to finance) might want to eat up any ability fee mark downs. BTW: How low change into your score that paying debt in uncomplicated words presented it as a lot as 580? in case you keep from getting new collections your score might want to pass up a lot after a year. reckoning on even as to procure the collections paid off, your score might want to bounce quickly.
2016-10-17 03:31:14 · answer #5 · answered by ? 4 · 0⤊ 0⤋
That does sound very high, but I'm not sure of all the other variables outside of your low credit. Have you tried more companies than the one that approved you for 11%? If not, call around...sometimes if you get a good broker/agent, they can work the numbers better for you. You could also try this site for help, free quotes, and resources. http://loan.divinfo.com/
2007-01-26 06:36:57 · answer #6 · answered by Reenie 3 · 0⤊ 0⤋
For credit that bad, that is an excellent rate! It is very standard to be on sort of a probation deal for a few years. Once you prove yourself, yes, you can get a lower rate. Best of luck to you!
2007-01-26 04:09:13 · answer #7 · answered by AsianPersuasion :) 7 · 0⤊ 0⤋
My husband is a loan officer and if you would like he could see if he can get you a better % rate. 11% seems high to me but I don't know all of your situation. My husband works with subprime mortgages and they can usually get you a lower rate depending on your situation. If you want his contact information feel free to email me.
2007-01-26 04:15:33 · answer #8 · answered by Anonymous · 0⤊ 0⤋
What type of loan?
2007-01-26 04:08:04 · answer #9 · answered by Mike 2 · 0⤊ 0⤋